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1. Company Snapshot

1.a. Company Description

EverCommerce Inc., together with its subsidiaries, engages in providing integrated software-as-a-service solutions for service-based small and medium sized businesses in the United States and internationally.The company's solutions include business management software, including route-based dispatching, medical practice management, and gym member management solutions; billing and payment solutions that comprise e-invoicing, mobile payments, and integrated payment processing; customer engagement applications, which include reputation management and messaging solutions; and marketing technology solutions that cover websites, hosting, and digital lead generation.It also provides EverPro suite of solutions in home services; EverHealth suite of solutions within health services; and EverWell suite of solutions in fitness and wellness services.


In addition, the company offers professional services, including implementation, configuration, installation, or training services.It serves home service professionals, such as home improvement contractors and home maintenance technicians; physician practices and therapists in the health services industry; and personal trainers and salon owners in the fitness and wellness sectors.The company was formerly known as PaySimple Holdings, Inc.


and changed its name to EverCommerce Inc.in December 2020.The company was incorporated in 2016 and is headquartered in Denver, Colorado.

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1.b. Last Insights on EVCM

EverCommerce's recent performance was negatively impacted by its Q3 earnings release, which revealed a revenue miss and a lowered full-year sales forecast. The company's sale of its Marketing Technology solutions to Ignite Visibility may also be viewed as a negative, as it represents a divestiture of a business segment. Additionally, the company's Q3 earnings per share of $0.03 was merely in line with expectations, failing to exceed analyst estimates. These factors may contribute to investor concerns about the company's growth prospects.

1.c. Company Highlights

2. EverCommerce's Q3 2025 Earnings: Strong Margin Expansion and Strategic Acquisition

EverCommerce reported revenue of $147.5 million for Q3 2025, representing a 5.3% year-over-year growth, within the provided guidance range. Adjusted EBITDA of $46.5 million beat the top of the guidance range, with a margin of 31.5%, expanding 140 basis points year-over-year. The company's adjusted gross profit was $114 million, with an adjusted gross profit margin of 77.3%. Earnings per share (EPS) came in at $0.03, in line with estimates.

Publication Date: Nov -30

📋 Highlights
  • Revenue Growth:: Q3 revenue reached $147.5M, up 5.3% YoY, within guidance.
  • Adjusted EBITDA Performance:: $46.5M reported, exceeding guidance and achieving a 31.5% margin (140 bps expansion YoY).
  • ZyraTalk Acquisition:: Strategic AI platform acquisition to drive AI integration, with in-production features and future EverPro integrations.
  • Core SaaS Strength:: Core SaaS revenue grew 8% QoQ, outpacing 4.4% pro forma subscription/transaction growth.
  • Margin Expansion & Cost Optimization:: Adjusted gross margin hit 77.3%, with $10M+ annual operating cost reductions from transformation programs.

Revenue Growth and Mix

Subscription and transaction revenue, the primary recurring revenue base, was $142.2 million, growing 4.4% year-over-year on a pro forma basis. Core SaaS revenue grew over 8% in the quarter, driven by the company's continued strength in the SMB market. The revenue growth was partially impacted by $1.6 million in softness in rebates, primarily due to macroeconomic factors and tariffs affecting group purchasing programs.

Margin Expansion and Cost Optimization

Adjusted EBITDA margins improved due to continued cost optimization initiatives, mix shift to higher-margin products, and overall scale economies. The company's transformation optimization program has reduced operating costs by over $10 million in 2025. EverCommerce's adjusted EBITDA margins have grown from 20% to over 30% since the IPO, with continued opportunity for margin expansion.

Strategic Acquisition and Future Outlook

The company completed the strategic acquisition of ZyraTalk, a best-in-class AI Agentic platform company, which will serve as the center of its AI acceleration efforts. The acquisition brings AI at scale to EverCommerce, with many in-production features being sold to third-party customers and being fast-tracked for multiple EverPro native integrations. For Q4 2025, the company expects total revenue of $148 million to $152 million and adjusted EBITDA of $39.5 million to $41.5 million.

Valuation and Growth Prospects

With a P/S Ratio of 2.59 and EV/EBITDA of 16.47, the market is pricing in moderate growth expectations. Analysts estimate revenue growth of 5.5% next year. The company's ROIC of 6.44% and ROE of -0.09% indicate room for improvement in returns. The current valuation multiples suggest that the market is cautiously optimistic about EverCommerce's prospects, driven by its strong margin expansion and strategic acquisition.

3. NewsRoom

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EverCommerce to Present at the RBC Capital Markets Global Technology, Internet, Media and Telecommunications Conference

Nov -17

Source: globenewswire.com

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EverCommerce Inc. (EVCM) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Why EverCommerce Stock Is Plummeting Today

Nov -07

Source: fool.com

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EverCommerce (EVCM) Q3 Earnings Meet Estimates

Nov -07

Source: zacks.com

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EverCommerce Announces Third Quarter 2025 Financial Results

Nov -06

Source: globenewswire.com

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Ignite Visibility Partners with Leading Marketing Technology Services Provider EverConnect to Deepen Lead Generation, Home Services, and Healthcare Capabilities

Oct -31

Source: businesswire.com

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EverCommerce Announces Sale of Its Marketing Technologies Solutions to Ignite Visibility

Oct -31

Source: globenewswire.com

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EverCommerce Announces Date of Third Quarter 2025 Earnings Call

Oct -21

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.55%)

6. Segments

Subscription and Transaction Fees

Expected Growth: 3.5%

EverCommerce Inc.'s 3.5% growth in Subscription and Transaction Fees is driven by increasing adoption of its software solutions across various industries, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on innovation, customer retention, and upselling/cross-selling efforts contribute to the growth. Furthermore, the shift towards digital payments and the need for businesses to streamline their operations also support the segment's growth.

Marketing Technology Solutions

Expected Growth: 3.8%

EverCommerce Inc.'s Marketing Technology Solutions growth is driven by increasing demand for digital transformation, rising adoption of cloud-based solutions, and growing need for data-driven marketing strategies. Additionally, the company's strategic acquisitions and partnerships have expanded its customer base and enhanced its product offerings, contributing to its 3.8% growth.

Other

Expected Growth: 3.2%

EverCommerce Inc.'s 3.2% growth in 'Other' segment is driven by increasing adoption of its vertically-tailored software solutions, expansion into new markets, and strategic acquisitions. Additionally, growing demand for digital transformation in various industries, such as healthcare and fitness, contributes to the segment's growth.

7. Detailed Products

EverCommerce Payments

A payment processing platform designed for businesses to accept payments online and in-person

Timely by EverCommerce

A cloud-based scheduling and business management software for service-based businesses

MyTime by EverCommerce

A scheduling and booking platform for service-based businesses to manage appointments and customer interactions

Fullscript by EverCommerce

A healthcare technology platform for integrative health practitioners to manage patient care and dispensary operations

Updox by EverCommerce

A healthcare communication and collaboration platform for healthcare providers and patients

Sole by EverCommerce

A business management software for fitness and wellness studios to manage operations and customer relationships

8. EverCommerce Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

EverCommerce Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the industry.

Bargaining Power Of Customers

EverCommerce Inc. has a diverse customer base, which reduces the bargaining power of individual customers, and the company's products and services are often critical to its customers' operations.

Bargaining Power Of Suppliers

EverCommerce Inc. relies on a few key suppliers for critical components, but the company's scale and diversification efforts have reduced its dependence on any single supplier.

Threat Of New Entrants

The barriers to entry in EverCommerce Inc.'s markets are relatively high, and the company's established brand and customer relationships create a significant moat against new entrants.

Intensity Of Rivalry

The markets in which EverCommerce Inc. operates are highly competitive, with several established players and a high level of rivalry, which can lead to pricing pressure and increased marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.35%
Debt Cost 8.06%
Equity Weight 60.65%
Equity Cost 9.25%
WACC 8.78%
Leverage 64.89%

11. Quality Control: EverCommerce Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
EverCommerce

A-Score: 4.6/10

Value: 4.3

Growth: 7.9

Quality: 4.3

Yield: 0.0

Momentum: 6.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
LiveRamp

A-Score: 4.5/10

Value: 3.2

Growth: 6.8

Quality: 6.4

Yield: 0.0

Momentum: 6.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Bridgeline Digital

A-Score: 4.5/10

Value: 8.4

Growth: 4.7

Quality: 4.9

Yield: 0.0

Momentum: 7.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Repay

A-Score: 3.9/10

Value: 9.2

Growth: 5.1

Quality: 4.3

Yield: 0.0

Momentum: 1.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Bandwidth

A-Score: 3.9/10

Value: 6.8

Growth: 7.1

Quality: 2.6

Yield: 0.0

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Backblaze

A-Score: 3.5/10

Value: 4.8

Growth: 3.2

Quality: 3.2

Yield: 0.0

Momentum: 8.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.84$

Current Price

9.84$

Potential

-0.00%

Expected Cash-Flows